The issue saw applications for 46,09,14,370 shares against the total issue size of 71,40,793 shares. This means the offer was subscribed nearly 65 times as of 12.20 pm.
The company plans to raise a total of Rs 170.78 crore from the market. The company has already allotted 29,27,485 equity shares to anchor investors at Rs 175 apiece, valuing the transaction at Rs 51.23 crore, according to a circular uploaded on the BSE website.
Ashoka India Equity Investment Trust Plc, Abakkus Emerging Opportunities Fund-1, Saint Capital Fund, Nippon India Mutual Fund and HDFC Mutual Fund participated in the anchor book, it showed.
Most of the analysts are also positive on this defence sector play.
Brokerage firm Reliance Securities, which has not given any rating to the IPO, has a word of caution for investors. It finds the issue richly valued, which diminishes expectations of listing gain.
“While the company states there are no comparable peers for it, other defence companies like Hindustan Aeronautics and Bharat Dynamics are trading at discounts despite generating healthy cash flows and enjoying healthy FCF yield,” it said.
